How the PAS Group created a customer-centric loyalty program to increase customer engagement

In this client success story, read how the PAS Group used Lexer’s CDXP to achieve deeper customer understanding and create a bespoke customer loyalty program that drives acquisition, retention and engagement. 

There is a reason why successful retailers rely so heavily on loyalty and rewards programs—because they know their customers want to feel valued.

A recent study by Rare Consulting found that 83% of their sample customers were more likely to continue doing business with a brand offering a customer loyalty program. When successful, loyalty programs have the potential to drive retention, improve customer lifetime value (CLV), and acquire high-value customers. 

However, just like customer experiences, a one-size-fits-all approach to customer loyalty isn’t guaranteed to deliver worthwhile results. Your customers want custom-tailored loyalty programs with tiered rewards that cater to their unique behaviors, purchases, and interests. Personalization is key in the modern age of retail, and your customers expect that same degree of personalization in their loyalty and rewards programs. 

Australian apparel and sports business, The PAS Group, understood the importance of personalization before developing their own customer loyalty program. The PAS Group endeavored to create a loyalty program that focused on the satisfaction and experience of their customers, rather than just giving their customers rewards for purchasing. They wanted to deploy a program with a personal touch that focused on the core wants and needs of their valued customers.  

To accomplish this personal touch, the PAS Group tapped Lexer’s Customer Data and Experience Platform (CDXP) to first gain a deeper understanding of their customers. With this understanding, The PAS Group could create a bespoke customer loyalty program with the goal of increasing engagement rates, enhancing their acquisition strategy, and improving their customer journey.

The Problem: The need for a more customer-centric loyalty program 

The PAS Group’s brands cover a broad range of retail and wholesale apparel, serving demographics across age, gender, and price point. As a clothing retail business with diverse holdings, they ran into the challenge of creating a loyalty program that could meet the unique needs of their varied audiences. 

The PAS Group wanted to achieve a more nuanced understanding of their customers so they could create a tailor-made loyalty program. Additionally, they desired to use the data from their loyalty program to enhance their customer journey, in the hopes of increasing engagement and acquisition. 

Bringing a more customer-centric approach to their loyalty membership experience required an enriched and unified view of their customers. They needed software that would allow them to create granular segments based on a vast range of customer attributes. The PAS Group turned to Lexer’s CDXP to access the data-rich customer insights they needed to create a customer-centric loyalty program and enhance their existing customer journeys.  

The Solution: A customer loyalty program built on customer data

Equipped with Lexer’s CDXP, The PAS Group created multi-tiered rewards for their new loyalty program, basing each tier on the data extracted from Lexer insights. The PAS Group structured their loyalty tiers on the following customer data-points: 

• Total spend in the last 12 months (LTV)
• Last product purchased
• How many products were purchased in the last 12 months
• Average order value (AOV)
• Engagement rate
• Email and SMS engagement 

This granular approach to tiered rewards gave The PAS Group the capability to craft a loyalty program that was more enticing to new and current customers as it was built on their unique characteristics and behaviors.

The PAS Group then used the insights gleaned from their loyalty program to launch an email marketing campaign set on activating loyalty members who had signed up but had yet to make a purchase 3 months after joining. Using Lexer’s platform, The PAS Group marketers created two different segments from their membership audiences: 

• A: Members who had not purchased but had engaged with email outreach.
• B: Members who had not purchased and had not engaged with email outreach. 

With these two audiences created, The PAS Group A/B tested each segment with different rewards meant to encourage these un-engaged members to make a purchase. Additionally, data from Lexer informed the unique messaging in each email, personalizing their market strategy. 

The Results: 6 months of increased acquisition and a 42% email open rate

With guidance from Lexer’s CDXP and team, The PAS Group launched their data-driven loyalty program. As a result of their more customer-centric approach, The PAS Group saw an increase in customer acquisition of known prospects for 6 months following launch. 

Their membership engagement campaign proved to be a success as well, resulting in a 42% open rate on average, and a 4.4% CTR. Additionally, the Lexer built audiences helped The PAS Group optimize their future marketing spend and informed the personalization of following campaigns. 

Know your customer. Grow your business with Lexer’s CDXP 

Like the PAS Group, you can utilize Lexer’s CDXP to understand who your customers are to create the experiences that excite them. Lexer is the CDXP of choice for over 150 leading brands including Zimmerman, Kathmandu, Supergoop!, Sur La Table, and The Iconic. We transform disconnected data into actionable insights, and provide the workflow tools to automate and optimize the customer experiences that drive sales. 

About PAS Group
Established in 2004, The PAS Group is a leading Australian Apparel and Sport business with an established business model and platform providing scale, infrastructure and know-how to exploit opportunities in a fragmented market.

The PAS Group covers both retail and wholesale, with a comprehensive online capability. The business consists of over 15 brands and licenses as well as creating Private Brand product for major retailers. The product ranges cover a broad range of demographics across age, gender and price point. Key brands in the portfolio include Review and Black Pepper with key wholesale brands being Everlast, Lonsdale, Slazenger and Mooks.